Recurrent expenditure for Acute and psychiatric hospitals during 2010-11 amounted to $8,949 million, up 7.1% from 2009-10.

Wages and salaries (including on-costs such as employer contributions to superannuation and payroll tax) represented 50.6% of recurrent expenditure in 2010-11, down from 51.6% in 2009-10. Victoria recorded the highest proportion of total recurrent expenditure that was spent on wages and salaries, at 52.6%, while New South Wales had the lowest proportion, at 48.4%.

The next largest component of recurrent expenditure was Drug, medical, pharmaceutical and surgical supplies, which accounted for 27.7% of the total, as it was in 2009-10. This varied from 23.5% in Western Australia to 29.9% in New South Wales.

When recurrent expenditure is adjusted to remove the effects of price changes over the period, the average annual increase over the ten years from 2000-01 ($5,775 million) to 2010-11 ($8,828 million) was 4.3%.For further information on the use of chain volume measures to adjust income and expenditure, see Explanatory Note 25.

Acute and Psychiatric Private Hospitals, Real income and expenditure(a) : 2006–07 to 2010–11(b)

(a) Laspeyres input cost index was used to provide real income and expenditure. See Explanatory Note 25 for further information.(b) Data for the 2007–08 reference year are not available. See Explanatory Note 4 for further information.

The average expenditure per patient day was $1,123 in 2010-11 compared with $1,102 in 2009-10. This ranged from $1,270 per patient day in in Western Australia to $1,100 per patient day in Victoria. When average expenditure per patient day is adjusted to remove the effects of price changes over the period, the average annual increase over the ten years from 2000-01 ($886) to 2010-11 ($1,108) was 2.3%.

Gross capital expenditure for Acute and psychiatric hospitals during 2010-11 increased by 13.3% from 2009-10 to $788 million.In the three largest states, over 60% of the gross capital expenditure was spent on Land and buildings, with Major medical equipment accounting for just under 20%. Capital expenditure is volatile in the Private Health sector. Significant purchases or construction undertaken in any given year are unlikely to be repeated on a regular basis. Net capital expenditure totalled $757 million in 2010-11.

(a) Laspeyres input cost index was used to provide real expenditure. See Explanatory Note 25 for further information.(b) Data for the 2007–08 reference year are not available. See Explanatory Note 4 for further information.

Wages and salaries, including on-costs, as a proportion of total expenditure (%)

48.4

52.6

50.8

49.0

52.0

50.6

50.6

Average expenditure ($)(f)

Per patient separation

3 140

3 308

3 194

np

3 217

np

3 171

Per patient day

1 140

1 100

1 083

np

1 270

np

1 123

Gross Capital expenditure ($'000)(g)

Land and buildings

228 293

129 777

98 545

np

7 465

np

473 478

Major medical equipment

69 385

37 847

30 979

np

15 620

np

166 471

Information technology

11 421

12 617

4 571

np

2 437

np

31 796

Other capital expenditure

50 422

23 666

23 889

np

6 945

np

115 930

Total (e)

359 521

203 907

157 984

np

32 467

np

787 675

Net Capital expenditure ($'000)(g)

Land and buildings

228 293

113 497

97 294

np

7 465

np

455 767

Major medical equipment

68 387

33 102

30 684

np

15 150

np

159 855

Information technology

11 420

12 354

4 555

np

2 420

np

31 487

Other capital expenditure

48 868

20 287

23 164

np

6 704

np

109 975

Total (e)

356 968

179 240

155 697

np

31 739

np

757 084

np not available for publication but included in totals where applicable, unless otherwise indicated

(a) Tasmania, the Northern Territory and the Australian Capital Territory have been aggregated to protect the confidentiality of the small number of hospitals in these states/territories.(b) Expenditure refers to expenditure on goods and services, which does not result in the creation or acquisition of fixed assets (new or second-hand). See Glossary for further information.(c) Including surgically implanted prostheses and homograft items.(d) Including contract services. (e) Figures have been rounded and discrepancies may occur between totals and the sums of the component items.(f) Average expenditure figures can vary considerably between hospitals depending on the type of services they provide.(g) Capital expenditure refers to expenditure in a period on the acquisition or enhancement of an asset (excluding financial assets). See Glossary for further information. Note that 2010-11 is the first year the ABS has had gross and net capital expenditure available for publication.

For profit hospitals had a lower average expenditure per patient day ($989) than Religious or charitable Not for profit hospitals ($1291) and Other Not for profit hospitals ($1,229) in 2010-11. In 2009-10, For profit hospitals spent $994 per patient day, compared to $1,248 for Religious or charitable Not for profit hospitals and $1,044 for Other Not for profit hospitals.

For profit hospitals and Religious or charitable Not for profit hospitals spent a slightly higher proportion of their total expenditure on wages and salaries (both 50.7%) than the Other Not for profit hospitals (49.2%). The largest percentage point change from 2009-10 was experienced by the Other Not for profit hospitals, who spent 53.5% of their total expenditure on wages and salaries in 2009-10.

Around two thirds (66.9%) of all gross capital expenditure undertaken by Australian Acute and psychiatric private hospitals was undertaken by the For profit sector. The largest component of gross capital expenditure was land and buildings, with nearly two thirds (65.4%) of gross capital expenditure by For profit hospitals being invested in land and buildings.

Wages and salaries, including on-costs, as a proportion of total expenditure (%)

50.7

50.7

49.2

50.6

Average expenditure ($)(g)

Per patient separation

2 759

3 696

3 519

3 171

Per patient day

989

1 291

1 229

1 123

Gross Capital expenditure ($'000)(h)

Land and buildings

np

124 048

np

473 478

Major medical equipment

np

64 655

np

166 471

Information technology

10 776

20 685

335

31 796

Other capital expenditure

71 449

43 267

1 214

115 930

Total (f)

527 063

252 655

7 957

787 675

Net Capital expenditure ($'000)(h)

Land and buildings

np

123 055

np

455 767

Major medical equipment

np

62 697

np

159 855

Information technology

10 558

20 606

323

31 487

Other capital expenditure

66 903

41 986

1 086

109 975

Total (f)

501 190

248 344

7 550

757 084

np not available for publication but included in totals where applicable, unless otherwise indicated

(a) For definition of 'For Profit/not for profit sector', see Glossary.(b) Comprising bush nursing, community and memorial hospitals.(c) Expenditure refers to expenditure on goods and services, which does not result in the creation or acquisition of fixed assets (new or second-hand). See Glossary for further information.(d) Including surgically implanted prostheses and homograft items.(e) Including contract services(f) Total may include figures where providers were able to provide a total expenditure figure, without further breakdown of expenditure items, therefore the total will not equate to the sum of the individual items.(g) Average expenditure figures can vary considerably between hospitals depending on the type of services they provide.(h) Capital expenditure refers to expenditure in a period on the acquisition or enhancement of an asset (excluding financial assets). See Glossary for further information. Note that 2010-11 is the first year the ABS has had gross and net capital expenditure available for publication.

The average cost per patient day rose as hospital size increased, with the exception of the 0-25 bed hospitals.. This reflects the greater complexity of procedures undertaken at the larger hospitals. In 2010-11, recurrent expenditure per patient day (unadjusted for price changes) at Acute and psychiatric hospitals with over 200 beds was $1,369 compared with the average of $677 for hospitals with 26-50 beds.

The proportion of total expenditure that is spent on wages and salaries varied from 48.4% of expenditure by hospitals with 101-200 beds to 55.7% of expenditure by hospitals with 26-50 beds.

Wages and salaries, including on-costs, as a proportion of total expenditure (%)

50.9

55.7

54.6

48.4

50.1

50.6

Average expenditure ($)(f)

Per patient separation

2 161

1 993

2 312

3 208

4 114

3 171

Per patient day

934

677

824

1 207

1 369

1 123

Gross Capital expenditure ($'000)(g)

Land and buildings

6 440

17 408

75 463

196 712

177 455

473 478

Major medical equipment

18 591

5 609

24 537

61 675

56 059

166 471

Information technology

3 106

1 016

3 976

5 750

17 948

31 796

Other capital expenditure

3 285

6 458

24 621

45 968

35 598

115 930

Total (e)

31 422

30 491

128 597

310 105

287 060

787 675

Net Capital expenditure ($'000)(g)

Land and buildings

6 440

17 228

59 183

196 337

176 579

455 767

Major medical equipment

18 591

5 261

20 476

60 314

55 213

159 855

Information technology

3 106

751

3 976

5 732

17 922

31 487

Other capital expenditure

3 275

6 319

20 444

44 938

34 999

109 975

Total (e)

31 412

29 559

104 079

307 321

284 713

757 084

np not available for publication but included in totals where applicable, unless otherwise indicated

(a) Based on number of available beds (average for the year).(b) Refers to expenditure on goods and services, which does not result in the creation or acquisition of fixed assets (new or second-hand). See Glossary for further information.(c) Including surgically implanted prostheses and homograft items.(d) Including contract services.(e) Figures have been rounded and discrepancies may occur between totals and the sums of the component items.(f) Average expenditure figures can vary considerably between hospitals depending on the type of services they provide.(g) Capital expenditure refers to expenditure in a period on the acquisition or enhancement of an asset (excluding financial assets). See Glossary for further information. Note that 2010-11 is the first year the ABS has had gross and net capital expenditure available for publication.